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How to Start a Credit Union

start a credit union

Starting a credit union can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful credit union.

Importantly, a critical step in starting a credit union is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start a Credit Union :

  • Choose the Name for Your Credit Union
  • Develop Your Credit Union Business Plan
  • Choose the Legal Structure for Your Credit Union
  • Secure Startup Funding for Your Credit Union (If Needed)
  • Secure a Location for Your Business
  • Register Your Credit Union with the IRS
  • Open a Business Bank Account
  • Get a Business Credit Card
  • Get the Required Business Licenses and Permits
  • Get Business Insurance for Your Credit Union
  • Buy or Lease the Right Credit Union Equipment
  • Develop Your Credit Union Marketing Materials
  • Purchase and Setup the Software Needed to Run Your Credit Union
  • Open for Business

1. Choose the Name for Your Credit Union

The first step to starting a credit union is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your credit union:

  • Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
  • Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
  • Think about marketing . Come up with a name that reflects the desired brand and/or focus of your credit union.

2. Develop Your Credit Union Business Plan

One of the most important steps in starting a credit union is to develop your business plan. The process of creating your plan ensures that you fully understand your market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

  • Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your credit union.
  • Company Overview – this section tells the reader about the history of your credit union and what type of credit union you operate. For example, are you a corporate, community, state-chartered, faith-based, or a federal credit union?
  • Industry Analysis – here you will document key information about the credit union industry. Conduct market research and document how big the industry is and what trends are affecting it.
  • Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
  • Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
  • Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
  • Product : Determine and document what products/services you will offer 
  • Prices : Document the prices of your products/services
  • Place : Where will your business be located and how will that location help you increase sales?
  • Promotions : What promotional methods will you use to attract customers to your credit union? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
  • Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
  • Management Team – this section details the background of your company’s management team.
  • Financial Plan – finally, the financial plan answers questions including the following:
  • What startup costs will you incur?
  • How will your credit union make money?
  • What are your projected sales and expenses for the next five years?
  • Do you need to raise funding to launch your business?

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3. choose the legal structure for your credit union.

Next you need to choose a legal structure for your credit union and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the owner of the credit union and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small businesses. It is an agreement between two or more people who want to open a credit union together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for a credit union include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for a credit union is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your credit union, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

4. Secure Startup Funding for Your Credit Union (If Needed)

In developing your credit union business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for a credit union to consider are personal savings and checking accounts, family and friends, credit card financing, business loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in a credit union that they believe has high potential for growth.

5. Secure a Location for Your Business

When looking for a location for your credit union, there are a few factors to consider. Credit unions need to be located in areas that have a lot of people who can use their services. Credit unions should also be close to public transportation so that members can easily get to and from the credit union. Finally, credit unions should be located in an area that will be affordable for the business. 

6. Register Your Credit Union with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your credit union’s name. This process is fairly simple and involves the following steps:

  • Identify and contact the bank you want to use
  • Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
  • Complete the bank’s application form and provide all relevant information
  • Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your credit union to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

To open a credit union in the United States, you will need to obtain a credit union charter from the National Credit Union Administration (NCUA). You will also need to obtain a license from your state’s banking regulator. In addition, you may need to obtain other licenses and permits depending on the products and services you offer.

10. Get Business Insurance for Your Credit Union

The type of insurance you need to operate a credit union will vary depending on the state.

Some business insurance policies you should consider for your credit union include:

  • General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
  • Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
  • Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
  • Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
  • Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
  • Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Credit Union Equipment

To run a credit union, you need the following equipment:

  • A computer with internet access
  • Software to manage your credit union’s finances
  • A fax machine
  • A secure location to store your credit union’s records and funds

12. Develop Your Credit Union Marketing Materials

Marketing materials will be required to attract and retain customers to your credit union.

The key marketing materials you will need are as follows:

  • Logo : Spend some time developing a good logo for your credit union. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
  • Website : Likewise, a professional credit union website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you..
  • Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your credit union.

13. Purchase and Setup the Software Needed to Run Your Credit Union

To run a credit union, you will need accounting software to track your income and expenses, as well as banking software to manage your customers’ accounts. Additionally, you’ll need customer relationship management (CRM) software to manage your customer interactions.  

14. Open for Business

You are now ready to open your credit union. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start a Credit Union FAQs

Is it hard to start a credit union.

There is no one size fits all answer to this question because the difficulty in starting a credit union depends on many factors, including the location of the potential business, the experience level of the management team, and the availability of startup funds. 

The first thing to do is find like-minded individuals who share your vision and are willing to pool their resources together. Once you have a group of committed individuals, you'll need to file paperwork with your state's financial regulator to establish your credit union. The process can be tedious, but if you follow the steps above, you should be able to open your own credit union without too much difficulty. 

How can I start a credit union with no experience?

There are a few ways you can open a credit union with no experience. You can start by contacting your local credit union or the National Credit Union Administration (NCUA). The NCUA is a government agency that charters and supervises federal credit unions. Additionally, you can speak with someone who has experience starting a credit union.

What type of credit union is most profitable?

There is no one size fits all answer to this question because profitability depends on many factors. However, since credit unions are owned by their members, profits are reinvested into them to be used to better serve their members. So, the more members a credit union has, the more profitable it may become. Community based credit unions and basic service credit unions are also profitable. 

How much does it cost to start a credit union?

Different types of credit unions differ in start-up costs. Typically, it runs from $5,000 to $50,000 to open a credit union, depending on the state. This is because there are many fees associated with starting a credit union, including the initial application fee, chartering fees, and bonding fees. States with lower costs of living have a lower cost of starting a credit union.

What are the ongoing expenses for a credit union?

One of the ongoing expenses for a credit union is its insurance premiums. Other ongoing expenses include credit union staff salaries, occupancy costs, and technology expenses.

How does a credit union make money?

A credit union makes money through the interest it charges on loans and the fees it charges for services. Another way a credit union can make money is by issuing shares of ownership in the form of dividends. Full-service credit unions also make money by loaning money to each other.

Is owning a credit union profitable?

A credit union can be quite a profitable financial institution because it is a member-owned, not-for-profit cooperative. This means that the members share in the profits generated by the credit union. Basic credit unions also often have lower fees and interest rates than other types of financial institutions. This makes them a more affordable option for people who need to borrow money. 

Why do credit unions fail?

Credit unions sometimes fail because they are not able to keep up with the competition from banks. They may also fail if they do not have a good business model or if they are not well managed. 

Another reason many credit unions may fail is because they are not able to generate enough revenue. This can be a problem if the credit union does not have enough members or if it is not able to attract new members. Finally, credit unions may also fail if they are not able to control their costs.

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Creating a Business Plan

Creating a Business Plan

The decision to create a business plan is an important one, whether you are starting a new business or growing an established one. A solid business plan is fundamental to long-term business success.

It serves two main purposes:

  • It acts as a roadmap for your business.
  • It is a tool that helps you obtain outside financing.

While the phrase “creating a business plan” may conjure up feelings of trepidation and dread, it will not be as difficult if you break your business plan down into its more essential parts.

Why Do You Need a Business Plan?

Benjamin Franklin said it best: “If you fail to plan, you are planning to fail.” While a business plan will not guarantee success, failing to have one almost guarantees that you will not find the success you seek.

Remember the roadmap analogy? It is an accurate one to consider. The first thing you need to do before creating the roadmap, though, is to figure out where you are heading.

In order to do that, you should ask yourself four simple questions.

  • How do you want your business to look in one year?
  • How would you like it to look in three years?
  • Where do you want to see your business going in five years?
  • What would you like to have accomplished by your tenth year in business?

Seek the answers to those questions, keeping in mind profits, revenues, expansion, growth and other critical drivers and metrics for your business.

What Does a Business Plan Include?

In order to build the roadmap to reach your intended business destinations in a timely manner, you must include key pieces of information and analysis in your plan. The many moving parts of running your business become the fundamental building blocks of your long-term business plan. Consider each of them a pit stop along the road to business success.

Business Concept

Your business concept is a summation of your company in a few concise and simple sentences. It should clearly communicate the idea, design or value proposition behind your business so that a customer, investor or potential partner can quickly grasp what you will do and the value it will provide. Keep the concept statement to one paragraph.

Business Strategy

Your business strategy provides the detail on how you will execute the business concept. It describes your industry, explains your product or service, and the critical factors that will drive your business success. Those factors might include such things as your management team, operational plans or cost advantages. In essence, it is an executive summary that explains why your business is uniquely suited to succeed.

Specific things you should consider while creating the strategy section of your plan include:

  • Products or services offered now.
  • Products or services to offer in the future.
  • The size of the market.
  • How the market is changing.
  • Industry trends.

Market Analysis

In the market analysis section of your plan, you need to explore the ins and outs of your potential customers or markets.

  • Who are they?
  • Where are they?
  • What motivates them to buy the items or services you offer?
  • What do they want or need from you?
  • How are you going to attract new customers?
  • What do you plan to do to keep them coming back?

Most importantly, though, is to answer this one question: “How are you profitably going to meet the needs of your target customer?”

Competitive Analysis

In order to be complete, your marketplace analysis must pay attention to your competitors. This is necessary whether you are an established business looking to expand or a new business interested in taking business away from other established businesses in the area.

Questions to ask yourself here, include:

  • How is your business going to succeed in a market that is already being sufficiently served by another business in your industry?
  • Is there sufficient demand to bring another business into the market or expand your existing business?

Financial Analysis

This section of your business plan will look at the financial aspects of your business. As a new business you will need to include:

  • Break-even analysis.
  • Financial ratio calculations.
  • Internal and external funding requirements.
  • Projected revenues and profits over one, three, and five-year terms.

Don’t forget to include plans for assets the business needs to acquire and the costs of the marketing plan the business intends to follow coming out of the gate.

Existing businesses need to include cash flow statements, balance sheets, and pro-forma income statements, for example.

Keep in mind, you should provide information that will assist potential lenders (banks and credit unions) and investors in approving loans or green-lighting investments in your business.

Maintaining Your Business Plan

You should not just write a business plan and place it in a drawer. To get the most benefit from it, it should be a dynamic evolving plan. You must adjust your plan as necessary with changing markets, new product concepts, evolving technology, need for additional financing, and goal achievements, just to name a few. An old business plan may not reflect reality any longer, so be sure to revisit your business plan periodically. Having a update checklist helps you to do just that.

In the beginning, making a business plan may seem like a onerous task. It can be simpler if you break it down into its individual components. Once you have a plan in place, you will begin to see the effectiveness of how such a simple business tool can take the guesswork out of starting a business or growing one.

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Five critical areas for credit unions to grow and prosper: Business development

By Dr. Michael Hudson, Ph.D.

Dr. Michael Hudson

Business development is emerging as a critical function for credit unions today as they seek to attract new members, expand the number of SEGs they serve, and reach out to new audiences they have not previously served, including the small business community.

Candidly speaking, the business development function historically has not been handled well by credit unions. In many cases it has been viewed solely as ‘member development’ with the focus being on signing up more members, with limited attention to creating profitable relationships with those members. The same can generally be said of SEG-development efforts that have often focused on passing out logo-wear and information packets to those who already believe in and belong to the credit union.

In today’s marketplace for financial services, business development has taken on a new importance. Here are three things your credit union can do to improve your effectiveness:

1. Educate Members The current economic climate has created a rare ‘teachable moment’ as consumers have become much more aware of the importance of financial management. It is a moment not unlike the time during and after the Great Depression, and it provides a tremendous opportunity for credit unions to reach out and strengthen their relationships with their current members, AND to attract new members by helping them find the solutions they are seeking during this challenging time.

For this reason, the foundation of every credit union’s business development program ought to be educating current and potential members. Whether you design, develop, and deliver your own custom programs branded for your credit union, or whether you opt to use pre-packaged materials, you can use the delivery of informative education that helps members deal with their personal financial issues to open the door and strengthen the relationship.

One important thing to remember: There are many ways to deliver effective education and the old model of ‘get them in a room and teach it to them’ may not be the best. People have been trained to have short attention spans and they seek to learn what they need to know at their convenience, not yours. So look to online tools and non-traditional approaches that help you be the convenient solution when they need and want to learn!

2. Target Prospects Any effective business development effort needs to focus on a target group of people who fit some common profile in order to be successful. In sales we talk about turning suspects into prospects using a set of criteria to pre-qualify them before we invest a lot of time and energy in trying to sell them anything.

Credit unions need to become more skilled at this process…using their MCIF systems to identify their most profitable member profiles by relevant demographics and product usage and then targeting people who look like those people with their business development efforts. Taking it down to the product and service level so that marketing campaigns are focused on those most likely to take action will not only reduce costs, it will also strengthen your relationships with your members because it will become clear that you truly understand their needs.

3. Close the Sale The Achilles heel of most business development efforts in most businesses is that they focus too much on attracting warm bodies and capturing their contact information and too little on asking for the sale. This is especially true of credit unions who feel sales is not something they should be doing because they are about serving their members. But the fact is that you sell me a product that fulfills one of my financial services needs, you are serving me.

The real point here is that the focus of business development within the credit union industry needs to shift away from just informing people about the existence of credit unions, away from relying on the credit union brand as a differentiator, and away from tracking the number of events, mailings, and contacts. The focus instead needs to be on implementing a follow up process that reaches out to the qualified prospects attending the events and receiving the messages… asking them to take action and become a member or to move their loan or IRA or checking and savings accounts to the credit union.

Learning to ask for the order and close the sale is not easy, and it won’t always happen on the first try (it takes repeated exposure to the offer before people will act) but shifting your business development effort toward achieving measurable results in the form of sales is the pathway to success!

ACTION ADVICE Get your team together and review your current business development efforts. Are you focused on connecting with the right prospects and are you asking for the sale? Have you implemented an effective member education program to improve the financial management skills of your current and prospective members, and in the process positioned your credit union as the real solution to their problems? If not, take action today to revamp your efforts and get them on track!

Article One: Five Critical Areas for Credit Unions to Grow and Prosper Article Two: Improving Your Efficiency

Michael Hudson, Ph.D., founder of CreditUnionStrategy.com , has been a credit union member since he was three months old). He facilitates strategic planning processes, leadership retreats, and culture building experiences for credit unions across America. Learn more at www.CreditUnionStrategy.com or connect at www.Facebook.com/CreditUnionStrategy or www.Twitter.com/CUStrategy

Michael Hudson

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How to Create a Comprehensive Credit Union Business Plan

Introduction.

This Credit Union Business Plan Sample provides a comprehensive overview of the business plan for a credit union. It outlines the mission, objectives, and strategies of the credit union, as well as the financial projections and marketing plans. The plan also includes a detailed analysis of the competitive landscape and the potential for growth. This sample plan is designed to provide a starting point for credit union owners and managers to develop their own business plans. It is important to note that this plan is not intended to be a substitute for professional advice or services.

Creating a comprehensive credit union business plan is essential for the success of any credit union. A business plan is a document that outlines the goals, strategies, and objectives of the credit union. It also serves as a roadmap for the credit union’s future.

The first step in creating a comprehensive credit union business plan is to define the mission and vision of the credit union. The mission statement should clearly articulate the purpose of the credit union and the services it provides. The vision statement should outline the credit union’s long-term goals and objectives.

The next step is to conduct a market analysis. This involves researching the current market conditions and trends in the credit union industry. This research should include an analysis of the competition, customer needs, and potential opportunities.

Once the market analysis is complete , the credit union should develop a strategic plan. This plan should include the credit union’s goals and objectives, as well as the strategies and tactics that will be used to achieve them. The plan should also include a timeline for implementation and a budget.

The next step is to create a financial plan. This plan should include a detailed budget, as well as projections for income and expenses. It should also include a plan for capitalizing the credit union and a plan for managing risk.

Finally , the credit union should create an operational plan. This plan should include a detailed description of the credit union’s operations, including staffing, customer service, and technology. It should also include a plan for marketing and advertising.

Creating a comprehensive credit union business plan is essential for the success of any credit union. By following these steps , credit unions can ensure that their business plans are comprehensive and effective.

The Benefits of Developing a Credit Union Business Plan

business plan for a credit union

Developing a credit union business plan is an important step for any credit union looking to grow and expand its services. A business plan provides a roadmap for the credit union to follow, outlining the goals and objectives of the organization and how it plans to achieve them. It also serves as a tool for communicating the credit union’s mission and vision to potential members, investors, and other stakeholders.

The benefits of developing a credit union business plan are numerous. First , it helps the credit union to clearly define its goals and objectives, and to develop strategies for achieving them. This includes identifying potential markets, assessing the competitive landscape, and developing a marketing plan. Additionally , a business plan can help the credit union to identify potential sources of funding, such as grants, loans, and investments.

Second , a business plan can help the credit union to develop a budget and financial projections. This includes forecasting income and expenses, as well as developing a plan for managing cash flow. This information can be used to make informed decisions about how to allocate resources and to ensure that the credit union is financially sound.

Third , a business plan can help the credit union to develop a risk management strategy. This includes identifying potential risks and developing strategies for mitigating them. This can help the credit union to protect its assets and ensure that it is able to meet its obligations.

Finally , a business plan can help the credit union to develop a strategy for growth. This includes identifying new markets, developing new products and services, and expanding into new geographic areas. This can help the credit union to increase its membership base and to increase its profitability.

In summary, developing a credit union business plan is an important step for any credit union looking to grow and expand its services. It can help the credit union to clearly define its goals and objectives, develop a budget and financial projections, develop a risk management strategy, and develop a strategy for growth. All of these benefits can help the credit union to achieve its goals and to ensure its long-term success.

Analyzing the Financials of a Credit Union Business Plan

The financials of a credit union business plan are an essential component of the overall plan. A thorough analysis of the financials is necessary to ensure the success of the credit union.

The financials should include a detailed budget, a cash flow statement, and a balance sheet. The budget should include all expected income and expenses, including salaries, rent, and other operating costs. The cash flow statement should include all sources of income and expenses, including loans, investments, and other sources of revenue. The balance sheet should include all assets and liabilities, including loans, investments, and other assets.

It is important to analyze the financials of the credit union business plan to ensure that the credit union is financially sound. The financials should be reviewed to ensure that the credit union is able to meet its financial obligations and that the credit union is able to generate sufficient income to cover its expenses.

The financials should also be analyzed to ensure that the credit union is able to meet its goals and objectives. The financials should be reviewed to ensure that the credit union is able to meet its goals in terms of loan origination, loan servicing, and other services. The financials should also be analyzed to ensure that the credit union is able to generate sufficient income to cover its expenses and to ensure that the credit union is able to meet its goals in terms of loan origination, loan servicing, and other services.

Finally , the financials should be analyzed to ensure that the credit union is able to meet its goals in terms of customer service. The financials should be reviewed to ensure that the credit union is able to provide quality customer service and that the credit union is able to meet its goals in terms of customer service.

The financials of a credit union business plan are an essential component of the overall plan. A thorough analysis of the financials is necessary to ensure the success of the credit union. By analyzing the financials , the credit union can ensure that it is financially sound and that it is able to meet its goals and objectives.

Crafting a Strategic Plan for Your Credit Union

The purpose of this document is to provide a strategic plan for [Name of Credit Union], outlining the steps necessary to ensure the continued success of the organization. This plan will provide a roadmap for the credit union to follow in order to achieve its goals and objectives. It will also provide a framework for decision-making and resource allocation.

Mission Statement

[Name of Credit Union] is committed to providing our members with the highest quality financial services and products, while maintaining a strong commitment to our community. We strive to create a culture of trust and respect, and to foster an environment of financial literacy and education.

Vision Statement

Our vision is to be the premier financial institution in our community, providing our members with the best products and services available. We will strive to be a leader in financial literacy and education, and to be a trusted partner in our members’ financial success.

Goals and Objectives

1. Increase membership: We will strive to increase our membership base by 10% over the next three years.

2. Increase loan portfolio: We will strive to increase our loan portfolio by 15% over the next three years.

3. Increase deposits: We will strive to increase our deposits by 20% over the next three years.

4. Increase financial literacy: We will strive to increase our financial literacy programs and services by 25% over the next three years.

5. Increase community involvement: We will strive to increase our community involvement by 30% over the next three years.

1. Increase membership: We will focus on marketing and outreach efforts to attract new members. We will also focus on providing exceptional customer service to retain existing members.

2. Increase loan portfolio: We will focus on expanding our loan products and services to meet the needs of our members. We will also focus on providing competitive rates and terms to attract new borrowers.

3. Increase deposits: We will focus on providing competitive rates and terms to attract new deposits. We will also focus on providing exceptional customer service to retain existing deposits.

4. Increase financial literacy: We will focus on providing educational materials and seminars to our members. We will also focus on partnering with local organizations to provide financial literacy programs.

5. Increase community involvement: We will focus on partnering with local organizations to provide financial services and products to underserved communities. We will also focus on providing volunteer opportunities for our staff.

This strategic plan provides a roadmap for [Name of Credit Union] to follow in order to achieve its goals and objectives. By focusing on increasing membership , loan portfolio, deposits, financial literacy, and community involvement, we will be able to ensure the continued success of the organization.

Understanding the Regulatory Requirements for Credit Unions

Credit unions are financial institutions that provide banking services to members who share a common bond, such as a place of employment, a church, or a community. As with other financial institutions , credit unions are subject to a variety of regulations that are designed to protect the interests of their members and ensure the safety and soundness of the institution.

The primary regulator of credit unions is the National Credit Union Administration (NCUA). The NCUA is responsible for chartering and supervising federal credit unions, as well as insuring deposits in federal and most state-chartered credit unions. The NCUA also sets rules and regulations for credit unions, including capital requirements, lending limits, and other operational requirements.

In addition to the NCUA , state-chartered credit unions may be subject to additional regulations from their state’s banking department or other state agencies. These regulations may include requirements for capital, lending limits, and other operational requirements.

Credit unions must also comply with a variety of federal laws and regulations, including the Bank Secrecy Act, the Fair Credit Reporting Act, the Truth in Lending Act, and the Equal Credit Opportunity Act. These laws and regulations are designed to protect consumers and ensure that credit unions operate in a safe and sound manner.

Finally , credit unions must comply with the rules and regulations of the Federal Deposit Insurance Corporation (FDIC). The FDIC insures deposits in credit unions up to $250,000 per account. Credit unions must meet certain requirements in order to be eligible for FDIC insurance, including maintaining a minimum level of capital and submitting regular financial reports to the FDIC.

By understanding and complying with the various regulatory requirements for credit unions , credit unions can ensure that they are operating in a safe and sound manner and protecting the interests of their members.

Exploring the Different Types of Credit Union Business Plans

A credit union business plan is a document that outlines the goals, strategies, and objectives of a credit union. It is an essential tool for any credit union to have in order to ensure its success. A credit union business plan should include a detailed description of the credit union’s mission, vision, and values, as well as its goals and objectives. It should also include a detailed analysis of the credit union’s current financial situation, including its assets, liabilities, and cash flow.

There are several different types of credit union business plans. The most common type is the strategic business plan, which outlines the credit union’s long-term goals and objectives. This type of plan typically includes a detailed analysis of the credit union’s current financial situation, as well as a detailed description of the credit union’s mission, vision, and values. It should also include a detailed analysis of the credit union’s competitive environment, including its competitors and their strategies.

Another type of credit union business plan is the operational business plan. This type of plan focuses on the day-to-day operations of the credit union, including its products and services, its marketing and advertising strategies, and its customer service policies. It should also include a detailed analysis of the credit union’s financial performance, including its income statement, balance sheet, and cash flow statement.

Finally , a credit union business plan can also include a financial plan. This type of plan outlines the credit union’s financial goals and objectives, as well as its strategies for achieving those goals. It should also include a detailed analysis of the credit union’s current financial situation, including its assets, liabilities, and cash flow.

No matter what type of credit union business plan you choose , it is important to ensure that it is comprehensive and well-written. A well-written credit union business plan can help the credit union achieve its goals and objectives, and ensure its long-term success.

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Making a business plan.

Making a Business Plan

A solid business plan is important for long-term success. It helps serve two main purposes:

  • It acts as a roadmap for your business
  • It is a tool that helps you obtain outside financing

While it may seem overwhelming at first, once you break it down, it’s fairly simple!

After putting your plan in place, you’ll see how such a simple business tool can help take the guesswork out of starting a business or growing one.

What Does a Business Plan Include?

Your business concept is a summation of your company in a few concise and simple sentences.

It should clearly communicate the idea, design or value proposition behind your business so that a customer, investor or potential partner can quickly grasp what you will do and the value it will provide. Keep the concept statement to one paragraph.

Business Concept

Your business concept is a summation of your company in a few concise and simple sentences. It should clearly communicate the idea, design or value proposition behind your business so that a customer, investor or potential partner can quickly grasp what you will do and the value it will provide. Keep the concept statement to one paragraph.

Business Strategy

Your business strategy provides the detail on how you will execute the business concept.

It describes your industry, your product or service and the critical factors that will drive your business success. Those factors might include such things as your management team, operational plans or cost advantages.

In essence, it is an executive summary explaining why your business is suited to succeed.

Specific things you should consider while creating the strategy section of your plan include:

  • Products or services offered now.
  • Products or services to offer in the future.
  • The size of the market.
  • How the market is changing.
  • Industry trends.

Market Analysis

In the market analysis section of your plan, you need to explore the ins and outs of your potential customers or markets.

  • Who are they?
  • Where are they?
  • What motivates them to buy the items or services you offer?
  • What do they want or need from you?
  • How are you going to attract new customers?
  • What do you plan to do to keep them coming back?
  • And most importantly... how are you profitably going to meet the needs of your target customer?

Competitive Analysis

In order to be complete, your marketplace analysis should also pay attention to your competitors. Questions to ask yourself include:

  • How is your business going to succeed in a market that is already being sufficiently served by another business in your industry?
  • Is there sufficient demand to bring another business into the market or expand your existing business?

Financial Analysis

This section of your business plan will look at the financial aspects of your business.

As a new business you will need to include:

  • Break-even analysis.
  • Financial ratio calculations.
  • Internal and external funding requirements.
  • Projected revenues and profits over 1, 3 and 5-year terms.

Don’t forget to include plans for assets your business needs and the costs of the marketing plan the business intends to follow.

Existing businesses need to include cash flow statements, balance sheets and pro-forma income statements.

Keep in mind, you should provide information that will assist potential lenders and investors in approving loans or green-lighting investments in your business.

Maintaining Your Business Plan

To get the most benefit from your business plan, it should be a dynamically evolving plan.

You should adjust your plan as necessary with such things as changing markets, new product concepts, evolving technology, need for additional financing and goal achievements.

An old business plan may not reflect reality any longer, so be sure to revisit your business plan periodically. Having an update checklist helps you to do just that.

Goals of Business Development in Credit Unions

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An effective business development plan is essential for creating opportunities for long-term business growth. Credit unions must continually focus on creating awareness and maintaining visibility, as they face vigorous competition from traditional banks and the services that traditional banks provide. As a result, the goals of credit union business development plans extend to all aspects of the organization.

Increase Awareness

A credit union can’t expect to grow if people incorrectly perceive who can and can’t be a credit union member. Although some credit unions -- such as small, faith-based organizations -- have charters that limit membership, just as many have community charters that cover a wide service market. Because business development focuses on developing partnerships and strategic relationships, a main goal is to get the word out, correct these misperceptions and increase public awareness. Distributing brochures throughout the credit union charter area that explain membership options and list credit union services can be helpful in accomplishing public awareness goals of business development.

Establish Select Employee Group Partnerships

Partnering with human resources at select employee group, or SEG, locations provides business development specialists opportunities to establish personal relationships with current and potential members and to compete with traditional banks. Partnerships most often result in businesses taking proactive steps to promote credit union membership among their employees, up to and including opening a branch office at the business location. Enhanced personal relationships create word-of-mouth advertising that can be invaluable in building momentum within the business to convert non-members into active credit union members.

Improve Member Relationships

Business development goals expand to include employees in enhancing the in-house experiences of credit union members. Cross-selling and offering service bundles that combine traditional saving accounts with other services -- such as checking accounts, credit cards and discount loan options -- create stronger relationships that are likely to increase member retention. Establishing and maintaining long-lasting member relationships can be enhanced by employee training and development programs.

Public Relations Goals

External business development goals include public relations efforts that establish member and nonmember relationships through community outreach. Public relations activities strengthen branding efforts, help in positioning and create a positive public image. Tactical public relations activities can include things like writing press releases and setting up and maintaining a credit union website. Other activities can include promoting employee volunteerism in credit union-sponsored community or local charity events.

  • The Financial Brand: 5 Myths That Plague Credit Union Marketing Professionals
  • Credit Union National Association: Seven Steps to Better Business Development

Based in Green Bay, Wisc., Jackie Lohrey has been writing professionally since 2009. In addition to writing web content and training manuals for small business clients and nonprofit organizations, including ERA Realtors and the Bay Area Humane Society, Lohrey also works as a finance data analyst for a global business outsourcing company.

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Writing a Business Plan

Writing a business plan is an essential part of building a successful business. At its core, a business plan is a road map for your project. It establishes your purpose, it sets goals and expectations, and it forecasts the relationship between cost and revenue. Business plans exist in many forms — some formal and some informal.

Business Plan Sample Questions

There are many different ways to structure a business plan, but ultimately you’re seeking to answer the same basic set of questions — either for yourself, your team or an outside investor. The following list of questions, which is adapted from The Wharton School Entrepreneurship Workshop “Business Plan Writing 101,” serves as a good starting point:

  • What is the business?
  • How does it work?
  • Who is the team?
  • What is the market?
  • Who are your competitors?
  • What is the market strategy?
  • What are the numbers?
  • What do you need?

A business plan doesn’t have to be formal in order to be effective. There are valuable insights to be gained whether you answer each of the questions above in a few sentences or with pages of in-depth research. Business plans are adaptable, and you will find that the level of detail you include will change depending on what stage of business development you’re in.

The Best Time to Write a Business Plan

We often think that business plans are reserved for specific high-stakes situations — like pitching to a panel of investors on a reality TV show. In fact, the process of writing a business plan can be a helpful tool at multiple points along your entrepreneurial journey. The best time to write a business plan is any time you can benefit from more focus and direction. This might be when you’re in the early stages of exploring a new idea, when you’re ready to commit to your idea, when you’ve been running your business for years, or even a combination of all three. We’ve highlighted three different phases below to demonstrate the many ways a business plan can support your vision over time.

The Idea Phase

The process of writing a business plan is the first step in translating a business idea into something concrete that you can act on. Daydreams about starting your own business are often hazy on the details, so it’s difficult to assess the validity of an idea without getting it down on paper. When you start to answer some basic questions about how your business will make money, you might find that your original idea has some weaknesses. Writing a business plan in the idea phase gives you an opportunity to address any overlooked areas before committing serious time and money to your new venture.

Writing a business plan in the idea phase:

  • Solidifies your idea by filling in the major details
  • Identifies strengths, weaknesses, opportunities and threats related to your business
  • Helps you determine whether or not your idea makes sense to pursue
  • Identifies the bare minimum of what you need in order to get started

The Launch Phase

Your initial idea has passed the test and you’re going all in—congratulations! During the launch phase, you will likely be communicating your business idea over and over again to others. You might be assembling a team, hiring employees, registering your business, or applying for grants or loans. In each of those situations, your idea will be challenged by others and you will find yourself having to answer all sorts of questions about your business. The launch phase is therefore the perfect time to develop a comprehensive business plan. Research your industry and learn about your potential customers. Forecast costs and revenues as realistically as possible. Explore different business models and determine a pricing strategy. The more you know about your business, the easier it will be to communicate your passion with others and get what you need in order to be successful.

Writing a business plan in the launch phase:

  • Determines what you need from others (like employees, vendors/suppliers or outside funding)
  • Improves your expertise in the industry
  • Enables you to speak confidently about your business to others
  • Prepares you for questions about cash flow, profit and loss
  • Identifies what makes you stand out from your competitors

The Growth Phase

A business plan can help you start your business, but did you know that it can still come in handy even if you’ve been successfully running your business for years? After some time, you may discover an opportunity to grow or expand your business. It’s an exciting prospect, but potentially overwhelming—that’s where your business plan can help. Rereading your business plan will remind you of the goals you established when you were first starting out. This information helps you make decisions that are in alignment with your original purpose. Revising and modifying your business plan allows you to grow in a strategic way and to include any areas that were missing from previous iterations. If your team is growing, sharing your business plan with your employees is an excellent way to connect them to your mission.

Writing a business plan in the growth phase:

  • Reminds you of your goals and acknowledges the progress you’ve made
  • Gives you perspective and eases decision-making
  • Allows you to address new areas or concerns
  • Helps you clearly communicate your vision to your team
  • Realistically identifies what you need in order to grow

Whether your business is a fragment of an idea or already up and running, writing a business plan is a versatile and powerful tool that will help you run your business thoughtfully and successfully.

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How credit unions can grow and meet their members’ needs in 2024

Bill Handel

Vice President, General Manager and Chief Economist, Raddon

Young couple visiting a home for sale.

Rethink the mortgage marketplace, be prudent in consumer lending and aim for higher per-member balances

As I discussed in my article last week, “What credit unions should know about the economy and interest rates in 2024,” economic conditions and the interest rate environment go a long way toward determining viable growth opportunities in both lending and deposits. When prioritizing their product offerings, however, credit unions must also factor in their position as stewards of their members’ financial well-being.

In this article, the second of three in a series, I’ll cover ways in which credit unions can meet their members’ needs while also promoting growth. 

Home mortgage originations

Refinancing activity has cratered; the purchase market, although below its 2021 peak, is resilient.

The mortgage marketplace

This area has well and truly been turned on its head, and credit unions are having to adjust by abandoning historical areas of strength, such as refinancing. We recommend they embrace areas they’ve often avoided – namely, the purchase market and home equity lending. 

1. Refinancing is dead 

We don’t see refinancing coming back any time soon (possibly for as long as four to five years from now). Refi is, of course, almost 100% driven by interest rates. As rates have risen, refinancing has ground to a halt. From 2021 to 2022, the volume of refinances fell by three-quarters, and from 2022 to 2023, it fell another 50%, according to the Mortgage Bankers Association. Homeowners sitting on mortgages in the 2% to 3% range have no incentive to refinance. Homeowners who borrowed at 7% or 8% don’t yet have the equity to be able to refinance. 

2. Home-equity lending is growing fast

For that very large swath of homeowners with both favorable mortgage rates and massively increased equity value in their homes, home equity products can be quite attractive. With the direction interest rates are likely to head in 2024 (we think lower, to some degree, but stable), the marketplace for home equity lending should continue to represent a strong growth opportunity. 

As an industry, credit unions haven’t focused much on home equity lending since the great financial crisis of the late 2000s. Home equity lending was viewed as a major contributor to the crisis, and the trauma of that experience drove many credit unions away from it. We think the housing market sits on a much, much stronger foundation than it did 15 years ago, and home equity loans and lines of credit will appeal to many potential borrowers while also serving credit union needs for mortgage-related products to sell to their members. 

We advise credit unions to investigate newer home-equity products, including the combination equity line/loan. This product gives homeowners the flexibility to deploy the loan both as a standard loan, with regular monthly payments of a set amount, and as a line of credit, which functions much like credit card borrowing (although more attractive to borrowers, owing to the comparatively much lower interest on home equity lending). Basically, this product enables borrowers to carve out tranches of a top-line loan amount and dedicate each tranche as a traditional loan or as a line of credit loan. This suits the homeowner’s need for both kinds of borrowing, but in a single product. 

3. It’s time to jump in to the mortgage purchase market 

The level of competition in the consumer mortgage purchase market has, over the years, prevented many credit unions from focusing on it. Unfortunately, the competition is only getting tougher. Nonetheless, we think credit unions can’t afford not to enter the fray. 

With refi dead, credit unions will have to make up the difference somewhere, and we think that, together with home equity, the purchase market is the answer.  

Unlike refinancing, younger generations, especially, have no choice but to enter the purchase market, regardless of interest rates. This is not to diminish the very real issues of affordability and scarcity of supply for younger generations still in the early stages of their earning potential. 

A lot of people are concerned about the consumer real estate market. They’re saying home prices are overly inflated and that a potential collapse – or, at least, a meaningful decline in home values – is imminent. We disagree. 

The first reason for our confidence in the housing market is demographic: Two very sizable cohorts – younger millennials and, on the horizon, Gen Z – will keep demand strong. Moreover, the supply of housing is still inadequate to fully meet demand, which will prop up prices. And finally, in the purchase market, interest rates are only part of the equation for potential buyers. As we’ve seen even as rates have risen, the purchase market has remained strong. 

We advise credit unions to be undaunted and resolute in attacking the purchase market. Granted, relatively new entrants like Rocket Mortgage, which market themselves relentlessly as the easy way to get a mortgage, are growing fast. We see a real opportunity for credit unions to attack the Rockets of the world at their weak point – their rates are meaningfully higher than what credit unions can offer. We’ll discuss this in more depth in the article coming next week.

Rising debt levels won’t necessarily preclude lending, but it’s important to understand the trends impacting consumer financial health.

The consumer lending market

First, let me offer a caveat before discussing this market: It’s very important not to view the consumer-finance market as a single, homogenous entity. As we discussed last week, we think the upper three-quarters of consumers, as defined by income, won’t feel the coming economic softening to any great degree (barring currently unanticipated circumstances). For the bottom quarter or so of that scale, however, credit unions need to be prudent in their lending decisions. 

Rising debt levels won’t necessarily preclude lending to members, but it’s important to understand the trends impacting consumer financial health and act accordingly. 

Consider automobile lending: According to the Federal Reserve, from January 2020 to the present, automobile lending across the entire U.S. economy (in dollar terms) grew by some 30%. In that same period, the volume of new automobile sales exceeded pre-COVID levels in only two months, according to the U.S. Bureau of Economic Analysis. The takeaway? Many consumers are spending more than they can afford on their cars. 

Credit-card usage is another instructive case: In the initial post-COVID months, there was a rapid decline in credit card balances across the entire system. Many observers thought – mistakenly, as it turns out – that the consumer was getting right with their debt and turning over a new leaf of financial responsibility. Instead, in the last three years (since mid-year 2021), there has been a very rapid growth in balances across the system. Credit unions must take this reality into account when making lending decisions. 

New financial products

We think there’s opportunity for credit unions to adapt products like buy now, pay later (BNPL) to their members’ needs. An evolution of the old layaway system, BNPL offers consumers a new financing option with the instant gratification of getting the product at the time of financing. BNPL is now lodged into our economy in a very significant way – much more so than many people understand.

BNPL is largely demographically driven: younger people and lower-income consumers are more likely to use it. It’s something of a mixed blessing for consumers in that it can be easy to accrue numerous BNPL purchases – called BNPL stacking. Before they know it, borrowers may have more financed purchases than they can keep track of (or pay off as quickly as they’d like to). BNPL can, therefore, be a contributor to deteriorating consumer financial health.

We think, however, that when done the right way, BNPL can offer a big benefit to consumers. For example, consider the young new homeowner who needs a $2,000 refrigerator but can’t afford to buy one outright. Financing by credit card, meanwhile, is unattractive for any number of reasons. If a credit union can offer a BNPL option to that young homeowner, and if that credit union can leverage their role as trusted advisor in suggesting and deploying that option, BNPL can be an attractive, financially responsible option. 

Deploying effective pricing strategies comes down to driving the right kinds of behaviors from individual members and the membership as a whole.

Deposit strategies

Credit unions remain under pressure on the deposit side, and we don’t see a great deal of relief in the near or medium term. It’s proved challenging to find enough deposits to fund the lending that credit unions need to make, which makes deposit strategies a critically important focus in 2024 and beyond.

From the onset of COVID, cash infusions from the government and the monetizing of the federal debt spurred significant growth in demand deposits and, most notably, liquid deposits (savings and money market). Liquid deposits, however, have plummeted. Relative to January 2020, the maximum deviation for liquid deposits spiked by some 30%, according to the Federal Reserve. Today, we’re sitting at only a 3% increase relative to January 2020, according to the Federal Reserve.

Certificates of deposit under $100,000, meanwhile, have soared relative to January 2020. CDs sit today at 68% over the January 2020 baseline, according to the Federal Reserve. This is not an entirely welcome development for credit unions, however, in that credit unions are paying more for these deposits than is sustainable, thus severely eroding margins.

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Demand deposits have maintained the great majority of the increase they saw relative to January 2020 (up 215% versus a maximum deviation of 228%), according to the Federal Reserve. Much of this growth represents the behavior of the upper end of the consumer market as well as business checking deposits, which remain high.

Credit unions will need to focus on deploying effective pricing strategies in 2024 and beyond. That means driving the right kinds of behaviors from the membership, both as individual members and the membership as a whole. Most importantly, recognize that not all members are rate driven. Deploy deposit pricing strategies that require the member to commit to the organization in terms of greater relationship (especially balances) in order to get the best rates. Our research has always shown that the strongest performing organizations get there by driving to higher balances per member.

Ride the economic tailwinds

Even in a weakening economy, there will still be many opportunities for credit unions to drive growth while also satisfying their members’ best interests. In next week’s article, the final piece of this three-part series, we’ll cover the industry and demographic trends that credit unions need to grasp and harness to their benefit. After all, it all comes down to retaining members and attracting new ones. By understanding this last component, you’ll be in a better position to successfully sell the products discussed above.

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Business Continuity Planning for Credit Unions

Business Continuity Planning for Credit Unions

The Federal Financial Institution Examination Council (FFIEC) recently updated guidelines for credit union business continuity, the latest revision since first establishing such guidelines in 2003 . This revision serves as a great opportunity to revisit the importance of business continuity planning for credit unions and lay out the basics any credit union should understand in its obligation to meet FFIEC guidelines.

This is a requirement of federally insured credit unions. NCUA Guidance Part 749, Appendix B, mandates that a credit union disaster recovery and business resumption plan:

  • Is commensurate with the institution’s complexity
  • Minimizes interruptions to members and maintains member confidence
  • Is reviewed annually and addresses changes in the credit union’s operations.

FFIEC’s goal for business continuity is to provide a basis for minimizing operational interruptions for credit unions and their customers after a serious event or disaster. The first step required by the FFIEC is to construct a business impact analysis (BIA). According to ready.gov, a BIA “ predicts the consequences of disruption of a business function and process and gathers information needed to develop recovery strategies .”

The FFIEC wants the BIA to include these five steps:

  • Assessment and prioritization of all business functions and processes
  • Potential impacts of business disruptions
  • Identification of the legal and regulatory requirements
  • Examination of the maximum allowable downtime and acceptable loss
  • Estimation of recovery time objectives (RTOs), recovery point objectives (RPOs), and recovery of the critical path.

Universal Musts

A credit union needs to understand the principles of business continuity planning and disaster recovery and then apply them to their unique functions and commercial purposes. That said, much of the work is similar to other industries.

For instance, any plan should receive the support of the board of directors. Therefore, the board should be informed and its buy-in is essential.

Along with buy-in from the board, it’s essential to designate a manager who has the board’s authority to enact the plan and that person can run point to prevent inertia from stalling progress. From that point, decisions can be made about how to communicate with other important stakeholders throughout the process. In a credit union, this means asking members, internal stakeholders, and any other stakeholders, such as any regulatory bodies. Disaster planning also requires the point person to set parameters for reviewing and revising the plan. This should be done annually at the least, and most likely more often.

Credit Union Specifics

Only a credit union can judge what its critical processes are and how long it will take to get them back up and running. What might be an acceptably short period of time for a manufacturing company with a long lead time and extended sales process will not work for a credit union, whose members usually need access to funds immediately. In planning for a problem such as lost internet access, you will need to determine how long you can go without it before members alter their perception of the credit union or choose to conduct business elsewhere. This is your RTO. Similarly, data can be lost. Some isn’t critical (say, video for a webinar), while others are life-or-death (such as transaction records).

Your impact analysis should address the relevant functions of the credit union, and determine which items are problems in which time periods (see below). Be sure to reach out to the important personnel because your BIA will address all of these matters, it’s the foundation for your business continuity and disaster recovery (BC/DR) plan.

business plan for a credit union

Building Your Critical Path

The results of the BIA will lead to the vital exercise of building a recovery plan. You know now which items are important, and you know which items have time-critical elements. This allows you to build a critical path — the series of contingent actions that result in the minimum time needed to achieve recovery.

The chart below describes the functions that must be addressed first.

  • On which processes is continuity of business dependent? (For instance, bagel Friday is probably less important than a working internet connection.)
  • Conduct an inventory of applications, then examine each one with an eye to what to do if an emergency renders it unavailable (temporarily or permanently).
  • List all locations, identify their capabilities and whether they can back each other up. (For instance, if the northern branch loses six employees in a plane crash, can the branch be backed up by employees from other branches?)
  • Related to this is staffing: Who in the organization has which skills? Can they back each other up right now, or with cross-training? Are there people in the organization with institutional knowledge that everyone relies on, but which has never been codified or trained?
  • What about your roster of vendors? How would they respond in an emergency? Is your business as critical to them as theirs is to you? Could they be a point of failure for any number of reasons — geography, business size, a poor relationship?
  • What records are needed? Digital data, backup servers, and the cloud have made this less of a problem, but are there one-of-a-kind documents that would prove to be a problem if lost in a fire?
  • What equipment will help you recover, whether it’s backup servers, fire-resistant vaults, or four-wheel drive vehicles in a region where it doesn’t usually snow?

Once the critical path is identified, budgeting decisions can be made, spending on the critical operations first and foremost.

business plan for a credit union

How to Get Started

To get the data above and build a plan, don’t go off into your office and close the door for two weeks. While the board’s approval provides clout, implementation requires elements of the entire credit union. Identify those people or groups (examples include IT, mortgage banking, commercial lending, personal loans, and teller operations, but this will depend on each credit union’s structure), then reach out to get their input. A kickoff meeting that includes at least one member of the board to underscore the importance of the process is a good way to roll out the planning work.

The planning can be done with one-to-one meetings, but it may be more beneficial to workshop the problem. With everyone in a room together, connections that might have been overlooked in a one-on-one meeting are more likely to pop up. Hypotheticals are essential. For all of your critical-path activities, everyone involved should be asking what they or their department would do if that activity is unavailable. For instance, if IT isn’t available for two weeks, how would that affect human resources? What about car loans? How could those departments work around the problem — or should they just wait?

The Nitty Gritty

The planning will provide a whole range of data. Pulling it together will be a challenge. Some credit unions (and other businesses) have attended to this task with their favorite spreadsheet, or pulled notes together in a word processing document that’s revised and re-revised. This adds a layer of complexity to an already-complex task because it requires planning how to organize and write the plan, then ensuring that the nuts and bolts of the document are correct as well as the plan itself being appropriate.

This is where a business continuity software tool like Infinite Blue’s BC in the Cloud provides support and direction. All the data entered into its transparent relational database makes organization simple, repeatable, and refreshable. The messiness of merging documents from disparate sources is avoided. You’ll be able to analyze the data, make charts, and produce analytics. Risks uncovered during the process can be assigned to an employee to address. Perhaps most helpful is the ability to use the multiple factors you’re investigating to create a risk score.

Analyze the data and then use them to build the plan. Scoring will help clarify the critical path. Enlist the management team, because only they can determine what the credit union’s appetite for risk is. Make sure they have all the data possible.

Ways to score risks should include thinking about how likely an event is, how frequently it will happen, and how suddenly it might occur. Some risks can affect operations; others can affect the credit union’s image. For instance, if the credit union submits to a ransomware event, it may keep the credit union functioning for its members, but it may also create a negative image among potential members or business partners. Comfort with those possibilities should be determined before engraving them into the plan in stone.

Having a plan alone is not enough. The plan and its recovery strategies should be tested to confirm that it’s suppositions work. When you test the plan, involve everyone in the exercise, including vendors whenever possible. Test the whole plan, and do it multiple ways: conduct a tabletop exercise at your facility, then test it away from your facility to confirm the plan will work when you can’t be there. Note the results, and update as needed.

What The NCUA Examiners Will Look For

Once the plan is validated, it will need to be ready for audit by National Credit Union Administration (NCUA) examiners. Because the NCUA is charged with insuring credit unions in the United States, it places a high level of importance on a credit union’s preparation for continuity and disaster recovery. To be ready, be sure that you’ve done your best to PREPARE (yes, it’s an acronym):

  • PLAN: Ensure financial services to members
  • RESOURCES: Allocate sufficient equipment and facilities
  • EXERCISES: Create realistic and challenging situations
  • PEOPLE: Maintain the readiness of staff and officials
  • ALLIANCES: Establish and rely on relationships with other organizations
  • REVIEW: Look at plans, then update them for maximum effectiveness
  • EXPERIENCE: Incorporate lessons learned.

How To Finish

It should be evident now that there is no true end to credit union continuity planning and disaster recovery. The NCUA’s guidance demands it because most credit unions will change, becoming more complex, either by serving more customers in a region or expanding to other regions. Doing the work of creating a BIA so you know your strengths and weaknesses, enlisting management at the top to give the task weight, involving managers across departments to create the best chance at missing nothing, and securing the participation of vendors to make recovery a holistic solution provides the best chance to do that. Paying attention to that detail by relying on business continuity software like BC in the Cloud to simplify and organize will focus effort on the plan and not its medium.

Even more insights from Infinite Blue.

When forces collide: the threats shaping 2024 and beyond.

AlertMedia Infinite Blue Webinar

Tips to present your program’s value to leadership

business plan for a credit union

Blue Sky Thinking

2024 Global Enterprise Resilience Report

2024 Global Enterprise Resilience Report

The 2024 Global Enterprise Resilience Report

Infinite Blue releases their 2024 Global Enterprise Resilience Report

Case Studies

How a university used BCIC to increase visibility, maintain compliance, and reach higher levels of readiness.

How a large, complex university in a severe weather area used BC in the Cloud® to increase visibility, maintain compliance, and reach higher levels of readiness.

Resilient and ready on all fronts.

business plan for a credit union

Putting a price on resilience

business plan for a credit union

Navigating the Storm: Hurricane Preparedness for Businesses

Hurricane Preparedness for Businesses

Issue brief: Rethinking Ready

Rethinking Ready Issue Brief

How a global fintech company used BC in the Cloud® to increase efficiency, accuracy, and executive confidence in its resilience program.

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Capital One’s Discover Acquisition: 5 Things to Know

Anna Helhoski

Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

Capital One’s $35.3 billion all-stock deal to purchase Discover could make it the largest credit card issuer in the country, in addition to expanding both its digital banking presence and Discover’s global payment network.

The deal arrives as consumers are struggling to keep up with inflated prices — and they’re carrying more credit card debt than before the pandemic. A report by the Federal Reserve Bank of New York, released on Feb. 6, found that Americans held a collective $1.129 trillion in credit card debt at the end of 2023. By comparison, by the end of 2019, Americans held $930 billion in credit card debt.

The report also showed that borrowers are having trouble repaying their debt . Serious delinquencies among credit card borrowers rose 6.36% in the fourth quarter of 2023 compared with a 4.01% increase at the same time in 2022. Both Capital One and Discover show an increase in delinquency rates, but Discover’s fourth-quarter results reported a larger spike in consumer card delinquencies than Capital One's.

After a Capital One call for investors on Tuesday morning, the markets responded: Discover’s stock rose while Capital One shares dipped slightly.

In the call, Capital One indicated it expects the deal to be complete by the end of 2024 or early 2025 — that is, if federal regulators allow it. The acquisition is expected to face close scrutiny in the coming year.

Here’s what you need to know about Capital One's Discover acquisition and how it could affect customers :

business plan for a credit union

1. Capital One would be a formidable credit cards competitor 

The deal opens the door for Capital One to become the nation’s largest credit card issuer by outstanding debt, outpacing JPMorgan Chase and Citigroup, according to the payment industry trade journal the Nilson Report. The company will remain based in McLean, Virginia, while maintaining a significant presence in Chicago, where Discover is based.

In the call with investors on Tuesday, Richard Fairbank, CEO and chairman of Capital One, touted the benefits of acquiring Discover’s global payment network, which will allow Capital One to more directly deal with merchants as opposed to a network intermediary. The more merchants Capital One can reach, the more money it stands to make over time.

While Capital One still holds contracts with Visa and Mastercard for many of its credit products, it will move at least some of its cards onto the Discover network over time, thus keeping a larger slice of the lucrative merchant fees its customers generate.

By owning a payment network, Capital One is poised to compete with its most direct competitor, American Express, and reduce its dependency on the two biggest players in global payments: Visa and Mastercard.

Fairbank says the company is also hoping to expand Discover’s network deeper into the global market.

Video preview image

2. Capital One hopes to expand its digital banking reach

Capital One is the ninth-largest bank in the U.S. with both physical branches and an online presence. Meanwhile, Discover’s banking presence is overwhelmingly online. But both are credit card-first, banking-second companies. The acquisition won’t change that, but it will enable Capital One to expand further into banking.

The deal would accelerate Capital One’s banking business by allowing the company to tap in to Discover’s network for banks. In the call with investors, Fairbank said Capital One plans to move its debit card business over to the Discover Signature debit network to help Discover compete with the other three networks.

Fairbank said that branding for Discover’s banking network would remain Discover. “Capital One as the network might not be as ideal a thing for other banks to choose as the Discover brand,” he said.

3. Discover would remain its own brand

Discover will remain its own brand in the combined company. In the investor call, Fairbank said Capital One will keep Discover’s branding and continue to market it. “Over time, customers would understand this is part of Capital One,” he said.

Fairbank indicated that it was unrealistic to convert the Discover brand into Capital One. “Think about all those stickers that are out there at every point of sale and all the real estate that’s now on every online checkout page and so on,” he said. “It would be a really big lift to convert that to the Capital One brand.”

Fairbank noted that while Discover is accepted nearly universally in the U.S., it has an image problem that Capital One hopes to change. He said, “Our research confirms that customers are very satisfied with acceptance, but the perception of acceptance among noncustomers lags the reality.”

Fairbank says Capital One plans to move some of its credit card volume to Discover’s network in order “to enhance its scale.” He also said the company “will lean hard into further building the brand and the perceived acceptance of the credit card network here in the United States.”

business plan for a credit union

4. The deal faces regulatory hurdles

Consumers won’t see any changes from the acquisition anytime soon. That’s because the deal won’t be complete until shareholders and regulators approve it.

The Justice Department, banking regulators and the Federal Deposit Insurance Corp. are likely to scrutinize the proposed deal. The Biden Administration has toughened its approach to mergers and acquisitions, including those still underway like the Kroger and Albertsons grocery chain merger and Alaska Airlines’ takeover of Hawaiian Airlines. And last month, a federal judge blocked JetBlue’s buyout of Spirit Airlines under antitrust laws.

The U.S. Office of the Comptroller of the Currency has also said it plans to institute a more complex, and ultimately slower, process for bank acquisitions. Capital One's Discover proposal faces standard regulatory procedures, so it’s unclear whether these stricter requirements would apply to this acquisition.

Fairbank noted in the call with investors that both Capital One and Discover will be filing approval applications with the federal government in the next few months and said “we believe that we are well-positioned for approval.”

5. The bigger the company, the higher the interest rates

Credit card interest rates are now much higher than in recent years, mirroring the broader rate environment. The average APR among credit cards that incurred interest was 22.75% in the fourth quarter of 2023, according to data from the Federal Reserve.

When it comes to interest rate offers, bigger companies aren’t always better, at least not for consumers. An analysis of 2023 credit card interest rate data by the Consumer Financial Protection Bureau, released on Feb. 16, found that the largest credit card issuers offer high interest rates — a maximum APR over 30% among nearly half of those issuers.

The report found a broad disparity between the median APRs on credit cards offered by large and small financial institutions based on credit scores. The biggest difference is among customers with good credit scores (620 to 719 in this report): Large card issuers offer a median APR of 28.2% — a difference of 10.02 percentage points compared with the median APR offered by smaller card issuers.

Big companies are also more likely to include an annual fee, and those fees are 70% higher than at small banks and credit unions, according to the CFPB report.

Still, big companies do tend to offer more generous rewards and discounts, like cash back and travel points, with their credit cards compared with small institutions. But the best perks are offered to the wealthiest customers, who make the most money through frequent and larger spending at merchants.

business plan for a credit union

Photo by Joe Raedle/Getty Images News via Getty Images

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business plan for a credit union

business plan for a credit union

‘Death Knell’ for Credit Union 401(k) Fee Challenge Will Stand

By Jacklyn Wille

Jacklyn Wille

Four participants challenging fees tied to the Credit Union Retirement Association 401(k) Plan lost their latest effort to have the case certified as a class action.

Judge James D. Peterson on Thursday declined to reconsider his January opinion declining to certify a 9,000-person class. The participants revised their class definition in an attempt to pass legal muster, but this new definition would create an impermissible “fail-safe” class because it would cover only those people who paid unreasonable fees and therefore have successful claims, Peterson said.

Both the original definition and this new proposal suffer from the same “fundamental problem,” Peterson ...

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Do I need life insurance to get a small business loan?

Woman talking to financial advisor about life insurance and small business loans

Find the requirements for obtaining a loan

If you choose to get a loan for your small business, the lender may require collateral or a guarantee of repayment. In some cases, a life insurance policy is required to secure a loan when the business is tied to an individual. This is often the case for small businesses, some of which may only have one or just a few employees. For instance, if Liz founds, runs, and manages Liz’s Donut Shop, there is no donut shop without Liz. Liz may need life insurance to get a loan.

Select the right life insurance

Starting or maintaining a small business typically requires hard work, dedication, lots of time, and lots of money. Getting the life insurance needed to secure a small business loan could be an important step to help your business grow. It is important to understand the different types of life insurance available, so you can find the right collateral for your small business loan.

Term life Insurance is the most popular form of life insurance used for collateral. These policies allow business owners to set amounts and terms to minimize insurance expenses and meet loan requirements. By selecting the exact amount of life insurance you need for collateral, you could save money in the long term. Monthly premiums are designed to be more affordable for term life Insurance.

Typically, to qualify as loan collateral, the life insurance policy must be for the same amount and length of time (often called a term) as the loan. If the loan is for $500,000, the insurance must be for the same amount or more. Similarly, if the loan term is 10 years, the insurance term must be at least 10 years.

By acting as collateral, a life insurance policy could help ensure that the small business loan is paid if the business owner dies. After the loan is paid, any remaining proceeds from the policy will go to named beneficiaries.

Whole life Insurance is another option for Small Business Administration (SBA) loan collateral. Whole life Insurance policies can accrue cash value over time and that cash value could be used as collateral for loans.

Like with term life Insurance, the whole life insurance policy value usually must exceed the amount of the loan. After the loan holder dies, the whole life insurance policy payout must be used to pay off the loan first. Any remaining proceeds will go to the beneficiaries selected by the policyholder.

Plan now to fund business growth

It is important to think about life insurance early in the business loan application process, so you can complete any forms and schedule any required doctor’s appointments. The process of getting life insurance to use as collateral is not complicated, but it may take a little time.

In some cases, business owners can use existing personal life insurance policies as collateral for a small business loan. Whether or not this is allowed will depend upon the individual insurer and the policy you have selected. You may need to adjust the amount or the term of your policy to match the loan.

Businesses need money to make money—and they need easy access to that money. Small business loans can be a crucial part of your business success plan. Just make sure you plan ahead so that your life insurance needs are met. This may help make your loan paperwork easier and more straightforward. Start planning now to get the funds your growing business needs to succeed. 

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These borrowers are likely to be eligible for Biden's new student loan forgiveness plan

thumbnail

  • The Biden administration has been working on a new student loan aid package that could come as soon as this year.

While Biden first attempted to cancel student debt through an executive order, he has now turned to the rulemaking process.

  • Here's who may qualify.

Since the Biden administration's first student loan forgiveness plan was rejected at the Supreme Court , it has been working on creating a new, legally viable relief package.

That debt cancellation could come as soon as this year . The alternative plan, which has become known as  Biden's "Plan B ," could forgive the student debt for as many as 10 million people, according to  one estimate .

The U.S. Department of Education and the negotiators tasked with determining who will be eligible for the president's revised aid have identified five groups of borrowers.

1. Those who owe more than they borrowed

Borrowers with outstanding federal student loan balances that exceed what they originally borrowed may be among those who qualify for the cancellation.

A person's student debt can balloon for a number of reasons, said Nadine Chabrier , a senior policy and litigation counsel at the Center for Responsible Lending.

"Unfortunately, it is very common," Chabrier said.

More from Personal Finance: The best money advice I heard this year as a CNBC reporter Op-ed: Money dates are great — but not on Valentine's Day Black Americans face 'disproportionately steep hurdles' to homeownership

Student loan servicers, the companies the Education Department contract with to service its debt, have a record of steering consumers into forbearances and deferments, she said. These options for  struggling borrowers  can keep loans on hold for many years, but interest often continues to accrue. 

Scott Buchanan, executive director of the Student Loan Servicing Alliance, a trade group for federal student loan servicers, denied that the companies benefit by veering from the government's orders.

"We are incentivized to meet the requirements that the government sets, which includes giving borrowers the benefits that the law provides," Buchanan said. "We are audited, and get business or lose it based on meeting those standards."

Advocates have also said the interest rates on federal student loans are too high, especially for borrowers from the 1980s , who have rates exceeding 8%. Current fixed rates today can be nearly as high .

2. Borrowers in repayment for 20 years or more

Those who have been carrying their student debt for decades may also benefit.

With many of the Education Department's repayment plans requiring 20 years or more of payments, such stories are common. Millions of Americans older than 60 are still paying off their student loans , research finds.

"There is both financial harm and psychological harm of being in debt for decades, especially when it feels like there is no hope that it will ever be repaid," said Persis Yu , deputy executive director at the Student Borrower Protection Center.

3. Attendees of schools of questionable quality

In its revised relief package, the Biden administration notes it is looking to include student loan borrowers who attended career-training programs "that created unreasonable debt loads or provided insufficient earnings for graduates," as well as borrowers who attended institutions with high student loan default rates.

4. People eligible for forgiveness who haven't applied

The Education Department already has several programs that lead to student loan forgiveness, and as part of its new aid package, it is looking to identify those who may be eligible but just haven't applied.

For example, the Public Service Loan Forgiveness program, signed into law by then-President George W. Bush in 2007, allows certain not-for-profit and government employees to have their federal student loans canceled after 10 years of on-time payments. In 2013, the Consumer Financial Protection Bureau estimated that one-quarter of American workers  may be eligible .

However, the technical and often confusing requirements of the plan have acted as a barrier, experts say.

How Wall Street trades student loans

Student loan servicers also earn a fee per borrower per month, which advocates say discourages transparency around loan forgiveness opportunities.

"Instead of providing borrowers with access to the affordable pathway out of debt, decades of mismanagement and abuse have left these borrowers trapped in debt like hamsters on a hamster wheel with no way out," Yu said.

5. Borrowers experiencing financial hardship

The Biden administration has also said it wants to forgive the debt of those experiencing financial hardship.

So far, it has proposed a set of factors that could identify struggling borrowers, such as those with student loan balances and required payments that are unreasonable relative to their household income, and people with high child care and health-care expenses.

It also said that financial hardship could be based on other debt obligations, disability or age, among other factors. Don't miss these stories from CNBC PRO:

  • Warren Buffett's Berkshire keeps new stock pick secret — again. Here's what it means
  • Michael Burry of 'The Big Short' fame buys Amazon, Alphabet and a dozen other new stocks
  • Move over, Nvidia. There's a new hot AI play that has soared 960% in the past year
  • Morgan Stanley's Slimmon names 3 stocks to buy right now: 'It's going to be a good year for equities'
  • This little-known bank is offering one of the highest CD rates

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IMAGES

  1. Credit Union Business Plan Template

    business plan for a credit union

  2. Credit Union Business Plan Template

    business plan for a credit union

  3. Credit Union Business Plan Template

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  4. Credit Union Business Plan Template

    business plan for a credit union

  5. Credit union overview

    business plan for a credit union

  6. PPT

    business plan for a credit union

VIDEO

  1. Laboratory Business Plan

  2. This is how you start building business credit

  3. A Credit Union That Supports You & Your Business

  4. Need Help In Business Credit?

  5. Business Checking Plus Interest :30

  6. Credit Unions: A Great Place to Work S1E1

COMMENTS

  1. PDF 2020 2024

    Strategic Plan 2020 - 2024 The Principles of Values-Based Banking ... Clearwater is a 64-year old credit union, the second-largest credit union in Montana, and the state's largest DFI. Recent economic performance has been solid: our balance sheet has been growing at approximately 6% per year, loan balances ... we have been working to better ...

  2. Starting a New Federal Credit Union

    Documents submitted in Phases 2 and 3 of the process will be submitted to the coordinator. Please contact the NCUA's Office of Credit Union Resources and Expansion at 703.518.1150 or [email protected] for guidance on starting a new federal credit union. A CURE staff member can discuss in greater detail with you the phased approach for starting ...

  3. How to Start a Credit Union

    Open for Business. 1. Choose the Name for Your Credit Union. The first step to starting a credit union is to choose your business' name. This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally you choose a name that is meaningful and memorable.

  4. PDF CUNA Small Credit Union STRATEGIC PLANNING

    Strategic planning is crucial to the success of every business, and credit unions are no exception. But it can be dif-ficult for leaders of smaller credit unions to allocate the necessary resources to this important process. Increased ... prehensive resource on the subject of developing, finalizing, and executing a strategic plan, but rather to ...

  5. Creating a Business Plan

    Creating a Business Plan. The decision to create a business plan is an important one, whether you are starting a new business or growing an established one. A solid business plan is fundamental to long-term business success. It serves two main purposes: It acts as a roadmap for your business. It is a tool that helps you obtain outside financing.

  6. Business and Marketing Plan Template For Community Charter ...

    Business Plan Reasons for Community Charter Conversion or Expansion. Discuss management's rationale for pursuing the community field of membership. Describe how the proposed conversion or expansion will improve member service, safety and soundness, adherence to the credit union's business plan, or other factors.

  7. PDF A Strategic Guide for Small CUs

    Smaller credit unions indicate ongoing operational challenges exist despite a recovering economy. Meanwhile larger credit unions seemingly move forward more readily with the advantages of economies of scale, diversity of services offered, and a gain in new memberships. CUNA recently posed a question to representatives of small credit unions, state

  8. Building Blocks for Your Business Plan

    Next Steps. Begin gathering the information you'll need to craft your business plan. Pull together financial data to create projections, design a marketing plan and start doing market research. Reach out to resources like the SBA or SCORE for help developing your business plan from scattered concepts into a cohesive, thorough document.

  9. Activity 2

    Activity 2 - Business Plan Development. For a business plan to demonstrate the economic viability of the PFCU, it must be supported by the following key information: Survey results showing FOM support; Evidence of funding for start-up costs, indicating financial and in-kind support; and. Identification of officials and management, indicating ...

  10. How To Prepare a Business Plan

    How To Prepare a Business Plan. A formal business plan can be invaluable. It will be needed for obtaining financing, and it can serve as a guide for the policies, strategies and tactics needed for running your business. It can be shared with potential key employees, it can serve as a key document if you sell your business, and the process of ...

  11. Writing a business plan: credit unions

    All credit unions must have a business plan. The business plan is an important tool that the board will use to: direct the credit union's activities. monitor its performance. identify risk. set out objectives of the credit union. You'll need a draft business plan before you can apply for authorisation to become a credit union.

  12. Ultimate Strategic Planning Guide for Credit Unions

    Having a set credit union business plan in place for how to connect with the right loan applicants in your desired industries can go a long way. Credit union membership growth strategies help you better understand the market, set more clear goals, and even gain a competitive advantage by mitigating risks.

  13. Five critical areas for credit unions to grow and prosper: Business

    In today's marketplace for financial services, business development has taken on a new importance. Here are three things your credit union can do to improve your effectiveness: 1. Educate ...

  14. How to Create a Comprehensive Credit Union Business Plan

    It also serves as a roadmap for the credit union's future. The first step in creating a comprehensive credit union business plan is to define the mission and vision of the credit union. The mission statement should clearly articulate the purpose of the credit union and the services it provides. The vision statement should outline the credit ...

  15. Making a Business Plan

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  16. Goals of Business Development in Credit Unions

    An effective business development plan is essential for creating opportunities for long-term business growth. Credit unions must continually focus on creating awareness and maintaining visibility ...

  17. PDF STRATEGIC PLAN

    On November 13, 2018, Civic Federal Credit Union launched into the credit union movement to serve North Carolina in a new way. We established a value-driven, wholly digital channel to help address the unmet needs of local government units and employees across the state of North Carolina. Using digital technology, we seek to

  18. Writing a Business Plan

    Writing a business plan is an essential part of building a successful business. At its core, a business plan is a road map for your project. It establishes your purpose, it sets goals and expectations, and it forecasts the relationship between cost and revenue. ... In addition, Red Canoe Credit Union is not responsible for the content, security ...

  19. How To Get A Business Loan From A Credit Union

    Credit score. Credit unions typically require a personal credit score of at least 680 to qualify for a business loan, but this requirement may be as low as 580. Requirements vary by financial ...

  20. How To Write An Effective Business Proposal

    Best Business Credit Cards ... Best Online Banks Best Credit Unions ... While a business plan lays out the path your business intends to take, a business proposal is a direct response to a ...

  21. How credit unions can grow and meet their members' needs in 2024

    Rethink the mortgage marketplace, be prudent in consumer lending and aim for higher per-member balances. As I discussed in my article last week, "What credit unions should know about the economy and interest rates in 2024," economic conditions and the interest rate environment go a long way toward determining viable growth opportunities in both lending and deposits.

  22. 6 Best Credit Unions for Business Accounts in 2024

    DCU has a business savings account, money market account and certificate of deposit options. It also offers a business Visa credit card and business loans, including term loans and lines of credit ...

  23. PDF Draft NCUA Strategic Plan

    Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, charters and regulates federal credit unions, and promotes widespread financial education and consumer financial protection.

  24. Business Continuity Planning for Credit Unions

    The Federal Financial Institution Examination Council (FFIEC) recently updated guidelines for credit union business continuity, the latest revision since first establishing such guidelines in 2003.This revision serves as a great opportunity to revisit the importance of business continuity planning for credit unions and lay out the basics any credit union should understand in its obligation to ...

  25. Capital One's Discover Acquisition: 5 Things to Know

    An analysis of 2023 credit card interest rate data by the Consumer Financial Protection Bureau, released on Feb. 16, found that the largest credit card issuers offer high interest rates — a ...

  26. 'Death Knell' for Credit Union 401(k) Fee Challenge Will Stand

    Four participants challenging fees tied to the Credit Union Retirement Association 401(k) Plan lost their latest effort to have the case certified as a class action. Judge James D. Peterson on Thursday declined to reconsider his January opinion declining to certify a 9,000-person class. The participants revised their class definition in an ...

  27. Maximize Your Money: Credit Union vs. Bank? Explore ...

    The Difference Between Credit Unions and Banks Credit unions are nonprofit financial cooperatives owned by their members. Banks, on the other hand, are for-profit business corporations owned ...

  28. Do I need life insurance to get a small business loan?

    Having extra money could help—whether that comes from a bank or a credit union. However, many business owners fail to understand the process for acquiring a small business loan. One of the most overlooked steps in the loan process is determining if you will need life insurance to get a small business loan. ... Plan now to fund business growth ...

  29. Streamlined Business and Marketing Plan For Community Charter ...

    A credit union can submit a streamlined business and marketing plan when applying to serve an area that immediately borders an existing community served by the credit union. A streamlined business plan must include four sections that describe financial impact, office/branch structure, a 24-month marketing plan, and new products, programs, and ...

  30. Biden's student loan forgiveness plan: Here's who may be eligible

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